Consequences of Yemeni Attacks in the Red Sea; Maritime Transport Costs Rise by 50%

A member of the board of the Iranian Transport Institutions Association stated that the Houthis have caused problems in the Red Sea, leading to a 50% increase in maritime shipping costs and fares. Masoud Daneshmand also reported that the time for maritime transport of goods between China and Europe has increased from two months to three months, emphasizing that if traffic through the Red Sea and the Suez Canal is not possible, ships will have to navigate around Africa. The Houthis, supported by the Islamic Republic of Iran, have warned in recent weeks that they will target ships originating from or destined for Israel in response to the war in Gaza. However, reports from incidents in the Red Sea indicate that the missile and drone attacks by this Iranian-backed group have also targeted vessels flying flags of other countries, including Norway and Liberia. Accordingly, the commander of the U.S. Fifth Fleet stationed in Bahrain stated on Saturday, January 9, that there are no signs of an end to the Houthis' 'reckless' attacks on commercial vessels in the Red Sea. Admiral Brad Cooper made this comment as more countries joined the international maritime mission known as 'Operation Guardian of Prosperity' to protect vessels passing through this vital waterway. It is noteworthy that with the escalation of Houthi attacks on commercial ships passing through the Red Sea, several shipping companies have suspended the use of this strategic and highly important route. The United States previously announced that more than 20 countries are members of this international coalition, although some have not publicly declared it. The U.S. Navy ship shot down a Houthi drone and a ballistic missile. The U.S. also sanctioned one individual and three entities facilitating financial assistance from the Islamic Republic to the Houthis. Discussions among European Union members regarding the protection of shipping in the Red Sea have taken place, and with reduced concerns about disruption in the Red Sea route, oil prices have decreased.